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Mohawk (MHK) Inks Exclusive Flooring Deal with Beazer Homes

Mohawk Industries, Inc. MHK has become the exclusive flooring product supplier of Beazer Homes USA, Inc. BZH. The company has been supplying carpet and tiles to Beazer Homes since 2010. Under the new collaboration, Beazer Homes will exclusively rely on Mohawk for hardwood, laminate and resilient flooring.

Mohawk is one of the largest flooring manufacturers in the global market. The company enjoys a competitive edge in the laminate flooring channel, backed by the Laminate and Wood segment’s industry leading design, patented technologies and brands.

On the other hand, Beazer Homes designs, builds and sells single-family homes. The company’s homes meet or exceed the benchmark for energy-efficient home construction and are designed to meet the personal preferences and lifestyles of its buyers. The new relationship reflects the companies’ focus on creating sustainable and attractive home interiors.

Notably, the housing/homebuilding industry has been riding high lately on solid new home sales data, affordable interest/mortgage rates and impressive housing starts. Resilient job growth and a healthy demand-supply balance along with seemingly high homebuilders’ confidence are adding to the momentum.

Since Mohawk has heavy exposure to the U.S. residential sector, its revenues are expected to increase with the recovery in the housing market, improvement in consumer spending patterns and increased demand for flooring in both commercial and residential markets.

Stock Price Movement

Mohawk’s shares gained 16% year to date, outperforming 14.7% growth of the Zacks categorized Textile-Home Furnishing industry.



Beazer Homes on the other hand underperformed the Building Residential/Commercial industry on a year-to-date basis (-5.2% vs. 21.9%).



Zacks Rank & Key Picks

Mohawk carries a Zacks Rank #3 (Hold) while Beazer Homes has a Zacks Rank #4 (Sell).

Better-ranked stocks in the same sector include Wynn Resorts, Limited WYNN and Royal Caribbean Cruises Ltd. RCL, both of which carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wynn Resorts’ 2017 earnings estimates moved north over the last 60 days.

Royal Caribbean is expected to witness 15.5% earnings growth in 2017.

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Wynn Resorts, Limited (WYNN): Free Stock Analysis Report
 
Beazer Homes USA, Inc. (BZH): Free Stock Analysis Report
 
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
 
Mohawk Industries, Inc. (MHK): Free Stock Analysis Report
 
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